The
purpose of the Safe Climate (Energy Efficient Non-Residential
Buildings Scheme Bill) 2009 is to introduce a scheme to improve
building energy efficiency.

The
scheme established by the Bill is intended to work as
follows:

1. At
the start of the scheme the Minister must determine through
regulations which types (or sizes) of buildings the Act will apply
to. Additional building types can be added in later years. The
Minister must also determine the method which building owners must
use to measure the emission intensity of buildings. This method may
be varied according to different circumstances, such as building
type, lease arrangement etc. Emission intensity is measured in
greenhouse gas emissions per square metre.

2. A
two year transitional reporting period starts on the next
1 July after the commencement of this Act. In this period the
owners of a non-residential building types participating in the
scheme from the outset must report their buildings emission
intensity annually to the Greenhouse and Energy Data Officer.
Building types brought into the scheme at a later date will
similarly have a two year transitional reporting
period.

3. Based
on emission intensity data collected during the transitional
reporting period the Minister would then set an intensity cap for
the relevant building types each year for 10 years. The intensity
cap would be guided by the average intensity for each city or
region and would decline predictably over time. Cap 'gateways'
setting an upper and lower bound into the future may be used to
balance investor certainty with the need for regulatory
flexibility.

4. The
Act also establishes a Building Efficiency Certificate Scheme which
will be administered by the Greenhouse and Energy Data Officer. The
Administrator will allocate tradable certificates, each worth one
tonne of greenhouse gas, to each participating building owner. The
amount of certificates each building owner will receive will be
determined by the emission intensity cap for their building type,
and the size of their building.

5. The
Minister must establish, within 12 months of the start of the
scheme, a trading mechanism to allow building owners to buy, sell
or stockpile the tradable certificates. Participating building
owners must continue to report their building's energy intensity
and surrender to the Greenhouse and Energy Data Officer
certificates to the value of the emissions intensity of their
building.

6. If
the owner of a non-residential building fails to surrender
sufficient certificates, the owner has a building efficiency
certificate shortfall and is liable to pay a building
efficiency certificate shortfall penalty . The amount of the
building efficiency certificate shortfall penalty is calculated by
multiplying the amount of the building efficiency certificate
shortfall by the scheme penalty rate for a year prescribed by the
regulations.

7. The
Greenhouse and Energy Data Officer must keep a register to be known
as the Register of the Emissions Intensity of Non-Residential
Buildings. The register may be kept completely or partly in
electronic form and freely available for public
inspection.